- UK house prices rose 0.4% in July after a 0.9% contraction in the previous month, the biggest climb since the end of 2016 and beating forecast of 0.2% growth.
- Better-than expected UK Halifax HPI data buoyed GBP, pushing GBP/AUD higher.
- The pair hit session highs at 1.6511, but finds stiff resistance at 20-DMA at 1.6526.
- GBP/AUD failed to hold break above 200-DMA, slips lower after dovish BoE with 'Shooting Star' formation.
- Intraday bias bearish as long as pair holds below 20-DMA. Technical indicators do not show clear directional bias.
- We see scope for bullish reversal only on decisive break above 200-DMA at 1.6689. Test of trendline at 0.69 then likely.
Support levels - 1.6427 (Jan 31 low), 1.64, 1.6330 (trendline), 1.63 (July 27 low)
Resistance levels - 1.6520 (5-DMA), 1.6526 (20-DMA), 1.66, 1.6689 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-capped-below-20-DMA-Pound-extends-BoE-induced-sell-off-838302) has hit TP1.
Recommendation: Bias lower as long as pair holds below 20-DMA. Stay short.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
